The Azure free account runs three countdowns: a 200 USD credit for 30 days, a set of services free for 12 months, and dozens that are free always. Understanding the three layers matters more than the numbers, because when billing starts depends on which layer you are on.
The Azure free account is structured differently from the other two: it is not simply "a sum of money plus allowances" but three layers running at once, each on its own clock.
Understand the three layers first, then decide how to use them. Amounts and allowances are on the official pages and can change - in some countries the credit is issued in local currency.
For contrast, GCP gives more credit but stops resources at expiry - see how the GCP free trial works; the AWS free tier is a third structure again, in AWS Free Tier for new accounts.
Three layers of free: credit, 12 months, always free
| Layer | What it is | Period |
|---|---|---|
| 1. Credit | 200 USD, usable on popular services (including usage beyond the free amounts) | 30 days |
| 2. Twelve months free | Monthly free amounts on a set of popular services | 12 months |
| 3. Always free | Dozens of services, free to all customers long-term | Ongoing |
The key point: the three run in parallel, not one after another. So "when does billing start" is not a single date - it depends on which layer you are on. The layer-1 credit expires after 30 days; layer-2 services start charging on usage beyond their free amounts after 12 months; layer-3 services stay free.
Two different countdowns: 30 days and 12 months
This is the habit Azure most requires - two countdowns run at the same time:
- 30 days: the life of that 200 USD credit. Materially shorter than the AWS free tier window, and shorter than GCP 90 days.
- 12 months: the life of the layer-2 monthly free amounts. Those services do not lapse when the 30 days end.
⛔ The most common arithmetic error is treating "30 days" as the length of the free period. In fact: at 30 days you only lose the 200 USD; the 12-month services remain, and the always-free layer remains. Conversely when 12 months end you still keep dozens of always-free services. Each layer expires on its own, independently.
Which services are free always
Layer three is where Azure has a real advantage over the other two - a substantial set of genuinely permanent free services, with meaningful amounts. Representative examples:
| Service | Always-free amount |
|---|---|
| Azure SQL Database | 100,000 vCore seconds per month of serverless usage plus 32 GB storage |
| Azure Cosmos DB | 1,000 RU/s of provisioned throughput plus 25 GB storage |
| Azure App Service | 10 web, mobile or API apps plus 1 GB storage, 1 hour per day |
| Azure Functions | 1 million requests per month |
| Azure Event Grid | 100,000 operations per month |
Representative layer-2 allowances include:
- Virtual machines: 750 hours per month each for Windows and Linux, across three burstable sizes (B1s, the Arm-based B2pts v2, and the AMD-based B2ats v2).
- Blob storage: 5 GB of locally redundant hot storage with 20,000 reads and 10,000 writes.
- File storage and media services are also free for 12 months.
How to use that table: if you plan to stay on Azure long-term, lean the architecture towards the always-free layer - the SQL Database serverless allowance, the Functions request allowance. That layer still exists after 12 months, whereas layer two expires. Exact amounts are on the official pages (official pages differ slightly in how they count the services).
What happens when the credit runs out
This is a material difference from GCP:
When the Azure credit is used up, usage moves to pay-as-you-go - you simply pay for what exceeds the monthly free amounts. Nothing is stopped. (By contrast, a GCP free trial expiry closes the trial billing account and stops its resources - see how the GCP free trial works.)
That is good news for anyone who intends to carry on after trying it - but it also means there is no "stop at expiry" safety net. On GCP the risk is "forgot to upgrade and got stopped"; on Azure it is "forgot to turn it off and kept being billed". The two risks point in opposite directions and both require active management.
Which makes budget alerts more important on Azure than on GCP - there is no hard stop to catch you. The method is in why your AWS bill jumped and the reasoning is universal.
How the three providers compare
| AWS | Azure | GCP | |
|---|---|---|---|
| Entry form | Credits plus allowances on selected services | Credit + 12-month services + always free | Credit + ongoing free tier |
| Credit size | Two lots, one requiring action | One lot, shortest window | One lot, largest |
| Window | Longer (a defined period) | 30 days | 90 days |
| At expiry | Contract and account closure are separate matters | Moves to pay-as-you-go, resources kept | Trial account closes, resources stopped |
| Long-term free layer | Yes (selected services) | The thickest (dozens of services) | Yes (20+) |
The three in one line: GCP gives the most money with the shortest window, and stops resources at expiry; Azure gives the least money with the shortest window, but the thickest long-term free layer; AWS sits in the middle but requires action to take full advantage. So "whose free allowance is better" depends on what you need it for - short validation looks at the amount, long-running workloads look at the free layer.
Three things to do right after signing up
What goes wrong during a free period is rarely "not enough allowance" - it is "nobody was watching". So do these three as soon as the account exists:
- Write down both expiry dates: 30 days (the credit) and 12 months (the services). This is not box-ticking - because running out of credit does not stop services, only your own vigilance prevents an unexpected bill.
- Set budget alerts and cost analysis. Azure provides both; this is the first thing to configure on a free account (the approach is in AWS billing: six actions that actually work).
- If you hold on-premises Windows Server or SQL Server licences, do that calculation first. Azure has a mechanism none of the other four offer: Hybrid Benefit - existing licences stack on top of reservations or savings plans. Skip this step and you will badly overestimate Azure cost. See how to get Azure discounts.
⛔ A reality that gets overlooked: the free allowance gives you a trial environment, but production involves more than price - sign-up barriers, payment methods and account ownership all matter. If you are stuck on provisioning or payment, that is where a channel helps (see Azure discounts and reseller pricing) - though it lowers what you pay, it does not replace the official free allowance or discounts.
FAQ
Will services stop when the 200 USD runs out?
No. Azure moves to pay-as-you-go, charging only for what exceeds the monthly free amounts - resources are kept. That differs from what happens after a GCP free trial expires (the trial account closes and resources stop), which is why budget alerts matter more on Azure: there is no hard stop to fall back on.
After 12 months, do I have no free allowance left?
You do. The 12 months ending only finishes layer two; the always-free services continue, with the official wording being that after 12 months you keep dozens of always-free services and still only pay for what exceeds the monthly free amounts. So it is worth leaning your architecture towards that layer before the 12 months are up.
Can a free account run production?
Technically yes, but understand its purpose is trial and validation: the credit window is only 30 days, and usage beyond the free amounts starts being billed. If you know it will run long-term, settle the long-term cost structure early (official and commitment discounts) rather than after the credit is gone.
What does "750 hours" of free VM usage mean?
It means 750 hours per month per eligible size - roughly one machine running continuously for a month. Two caveats: the sizes are restricted (entry-level burstable types, not any size), and each size is counted separately. The exact sizes and terms are on the official page.
If I sign up in a China region, is the credit the same?
Not necessarily. The official free account page notes that depending on the country of sign-up, the credit may be issued in a specified local currency. Regions operated by different entities can also differ in terms and available services - comparable to the independence of the AWS China Regions (see AWS free tier: the China Regions are a different programme). Go by the official page for the region you sign up in.
For long-term savings on Azure, what should I look at first?
Two things: Hybrid Benefit (if you hold on-premises Windows or SQL Server licences, this is a stacking mechanism unique to Microsoft), and the channel - Azure channel mechanics (CSP) are fundamentally different from the other four: the partner sets the discount, so quotes vary far more than elsewhere. See how to get Azure discounts; all five providers are in cloud discount mechanisms compared.